New scheme to tackle black money menace- Income declaration scheme

  • What is the scheme – Income declaration scheme
  • How –
  • Who is eligible –
  • Who is not eligible
  • Issue

What is the scheme – Income declaration scheme

  • A limited-period Compliance Window to declare undisclosed income or income represented in the form of any asset and clear up their past tax transgressions
  • The scheme provides immunity from wealth tax, scrutiny and prosecution and from the Benami Transaction Act
  • The scheme will be kept open for four months from June 1.

How –

  • by paying tax at 30 per cent,
  • Krishi Kalyan surcharge at 7.5 per cent and
  • penalty at 7.5 per cent
  • ie. a total of 45 per cent of the undisclosed income.

Who is eligible –

  • for domestic taxpayers
  • Undisclosed income of any financial year up to 2015-16 can be brought overground through this window.

Who is not eligible

  • People who have received notices under Sections 142 (1), 143 (2), 148, 153A or 153C of the Income Tax Act are not eligible to disclose previously concealed income.
  • Cases where a search or survey has been conducted and the time for issuance of notice under the relevant provisions of the Act has not expired
  • Cases where information is received under an agreement with foreign countries regarding such income
  • Cases covered under the Black Money Act, 2015
  • Persons notified under Special Court Act, 1992,
  • Cases covered under Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, and the Prevention of Corruption Act, 1988.

Issue

  • Experts believe this may prove a dampener for the scheme.This could be a dampener for the scheme as it would exclude potential disclosures from people who received notices seeking a regular explanation on the returns they had filed
  • Usually, many cases, especially of high net worth individuals, are picked up mechanically for scrutiny and notices are issued. Some notices are issued on the basis of returns filed by the taxpayer, and are not necessarily linked to undisclosed income.
Related Posts
Explained: NAM “Non Aligned Movement”- Important for IAS/KAS
Why in News: The  17th Summit of the Heads of State and Government of the Non-Aligned Movement (NAM) was held on 17 and 18 September in Margarita Island, northeast of Venezuela, in ...
READ MORE
Karnataka Current Affairs – KAS/KPSC Exams – 14th September 2017
Empowered Committee formed to develop ring roads around 25 cities The State Cabinet has constituted an Empowered Committee for development of ring roads around 25 cities, mainly district headquarters, under the ...
READ MORE
Atal Innovation Mission
The Atal Innovation Mission (AIM)was set up under NITI. In the budget for 2014-15, Rs 150 crore was allotted for the innovation mission, which will replace the National Innovation Council, a ...
READ MORE
IT-based malaria control initiative
In a first-of-its-kind initiative, the Mangaluru City Corporation in Karnataka will officially unveil its IT-based initiative to track and control malaria cases on October 17. The initiative would be through software ...
READ MORE
Today’s Current Affairs – Karnataka – KAS/KPSC EXAMS (17th March 2017)
New Socio-Economic Survey report on caste categorisation to be out soon Social Welfare Minister H Anjaneya has announced that the socio-economic survey report being prepared by the Backward Classes Commission would prevail ...
READ MORE
Karnataka Current Affairs- KAS/KPSC Exams- 17th Oct 2017
Schools to be penalised if they fail to implement Kannada phase-wise Students from other States who enrol in schools in Karnataka between classes two and eight will have to study class ...
READ MORE
Cable TV Services in Urban Areas will be digital from 1st January 2016 The cable TV is one of the most popular medium of mass entertainment & education. The country has ...
READ MORE
To offset silt in Tungabhadra dam: State plans to balance reservoir
Water Resources Minister M B Patil on Wednesday informed the Legislative Council that it would be unscientific to desilt the Tungabhadra dam, which has about 33 tmcft of silt deposition. Replying ...
READ MORE
Karnataka Current Affairs – KAS/KPSC Exams – 11th September 2017
VTU asks colleges to incubate startups Following in the footsteps of the Indian Institute of Management Bangalore and other institutes that support fledgling entrepreneurs, Visvesvaraya Technological University (VTU) has instructed all ...
READ MORE
Amendment to CRZ 2011
The amendment to the Coastal Regulation Zone (CRZ) notification 2011 permitting the use of reclaimed land for construction of roads in notified areas has triggered a wave of concern among ...
READ MORE
Explained: NAM “Non Aligned Movement”- Important for IAS/KAS
Karnataka Current Affairs – KAS/KPSC Exams – 14th
Atal Innovation Mission
IT-based malaria control initiative
Today’s Current Affairs – Karnataka – KAS/KPSC EXAMS
Karnataka Current Affairs- KAS/KPSC Exams- 17th Oct 2017
Cable TV digitisation
To offset silt in Tungabhadra dam: State plans to
Karnataka Current Affairs – KAS/KPSC Exams – 11th
Amendment to CRZ 2011